[Edaily Reporter Kwon Oh Seok ] NH INVESTMENT & SECURITIES announced on the 26th that it is maintaining its “Buy” investment rating and target price of 10,000 won for JIN AIR(272450).

Jeong Yeon-seung, an analyst at NH INVESTMENT & SECURITIES, stated, “We are revising down our earnings estimates for the second quarter and 2026 to reflect the strong won and rising fuel costs. However, the recent stock price has already largely factored in these cost pressures.” He added, “We expect the burden of operating costs to gradually ease in the second half of the year due to a recovery in outbound passenger demand from Korea and a decline in fuel costs. Expanding market share through mergers and acquisitions will also provide additional momentum.”
He forecast a recovery in earnings driven by short-haul routes. “We expect international passenger demand to recover starting in the second half of 2026 as fuel surcharges decline,” he explained. “From March to May, passenger traffic—particularly on Southeast Asian routes—declined due to cost pressures. JIN AIR is flexibly adjusting capacity, focusing on low-profitability routes.”
He added, “Considering domestic consumption conditions and the wealth effect driven by rising asset prices, we expect domestic demand for overseas travel to recover steadily from the second half of 2026 through the first quarter of 2027. “Based on falling fuel costs and strong demand on short-haul routes to Japan and China, we forecast a return to operating profit starting in the third quarter,” he added, noting, “While the rising exchange rate is a cost burden, we do not believe it will significantly dampen travel demand on short-haul routes.”
Researcher Jeong emphasized, “As the merger process between the parent companies, KoreanAirLines and Asiana Airlines, proceeds, the integration of JIN AIR, AirBusan, and Air Seoul is also expected to begin in earnest starting in the second half of 2026,” adding, “Following the integration, the company is expected to operate a fleet of approximately 60 aircraft and establish itself as South Korea’s largest low-cost carrier.”
He also added, “We anticipate cost savings through the expansion of international flights from Busan and the utilization of KoreanAirLines’ maintenance capabilities.”